NORDIC CHAMBER eNEWSLETTER
JYSKE GROWS DESPITE SLUGGISH MARKET
MAY 2015
T
he Nordic Chamber will in short time
launch a new and modernized website. As
a service to its members the Chamber offers to
publish press releases or any other company
information on the website and its Facebook
profile. The service is free of charge. “Our
intention is that the Chamber’s new website
will fill the role of an information hub for Nordic business news in the Czech Republic, so
we are grateful for any contribution from our
members,“ Executive Director Lea Turcarová
says. For more information please contact
[email protected].
in those markets, while also contributing positively to the company’s environmental impact
by more efficient transport of goods. “The new
distribution centre will significantly increase
our flexibility and speed in how we reach our
customers in countries like Poland, Czech Republic, Bulgaria, Romania, but also Russia and
Scandinavia,” says Magnus Welander, Thule
Group’s CEO and President.
(DI)
T
he media branch of Finance Minister
Andrej Babiš’s Agrofert Holding is,
according to the news server Svobodne Forum, finalizing negotiations to acquire a 50
wedish-Swiss ABB has extended its pro- percent-stake in FTV Prima, the Czech Reduction capacity in Brno and Trutnov with public’s second largest private broadcaster.
a EUR 46-million investment for air-insulated Sweden’s Modern Times Group paid in
medium voltage switchgear, instrument trans- 2010 GES Media Holding, then 100-percent
formers and substation automation systems. owned by the Czech media entrepreneur Ivan
The new facility in Brno will be one of the Zach, CZK 2.8 billion for a 50-percent share
of the broadcaster. The Swedes have earlier
denied that they plan to sell their stake in the
television station. Currently, Finance Minister Babiš’s Agrofert controls three Czech daily newspapers, one radio station and several
web servers.
(TBE)
S
most-advanced plants of its kind in the world,
with specially automated lines. Trutnov is
home to ABB’s largest European engineering
centre for substation controls and automation
and also offers engineering- and project-management services. ABB currently employs
more than 3,400 people in eight locations
across the Czech Republic.
(ABB)
T
he Swedish Thule Group has opened a
new distribution centre in Huta, western
Poland. The centre, which has cost SEK 65
million, becomes a logistical hub for Thule’s
growing sales in Central and Eastern European
markets and enables a better service to retailers
D
espite macroeconomic uncertainty in
the global economy the Danish furniture
manufacturer JYSK Group last year booked
its best result ever, both in terms of turnover
(EUR 2.8 billion) and earnings (EUR 392
million). In the Czech Republic the sales in
JYSK’s 71 stores reached CZK 1.93 billion
TOYMAKER LEGO EXPANDS IN KLADNO…
PRAGUE (CIA) – LEGO Group has opened a new 50,000 m2 hall
at its production site in Kladno, raising the plant’s capacity by 30
percent. LEGO estimates that it will create around 600 new jobs in
the Central Bohemian city. Currently around 2,000 people work for
LEGO in Kladno. The Danish toymaker’s Czech operation provides
the basis for packaging of LEGO sets, decoration and assembly of
LEGO elements, as well as research and development of packaging
and decoration technologies. The size of the entire production area
now equals 22 soccer fields. LEGO launched its operation in Kladno
in 2000 with 80 employees.
… FACES ATTACKS BY DANISH MEP
PRAGUE (TBE) – Member of the European Parliament Christel Schaldemose believes LEGO has violated EU regulations by accepting tax
rebates and “DKK 200 million in state subsidies” from the Czech Republic and Hungary to establish local production while cutting 380 jobs
in Denmark. “I’d like to have an evaluation of this practice, so I will ask
the EU Commission to check this case out,” MEP Schaldemose told
Berlingske Business daily. “It’s problematic if LEGO has received money for moving from one EU country to another. If the financial support
has been given after 1 July 2014, then I believe it’s illegal.”
and earnings CZK 80 million, which is a
14-percent growth year-on-year. The Danish
group established in the Czech Republic in
2003; in its latest Annual Report the company says it plans to expand its retail network in
the country.
(E15)
MEET OUR NEW MEMBER
Founded in Sweden in 1963, KGH Customs
Services is one of Europe’s major players within customs services. Our services
include mainly customs declarations and
customs consulting. Our independent and
customs processes-specialized company has
offices in all the key ports and border crossings in Europe and more than 650 staff operating in Austria, Belgium, the Czech Republic, Denmark, Finland, France, Germany,
Italy, the Netherlands, Sweden and Norway.
KGH Customs Services Czech Republic s.r.o.
started its activities on January 1st 2015; all
employees in the Prague office have long experience within customs administration. We
are thus able to provide you with high level
of competence in customs issues, with added
value of geographical coverage which brings
cost-effectiveness to the clients.
Radovan Šmídl
Country Manager
KGH Customs Services Czech Rep.
FORMER BUSINESSMAN FINNISH PREMIER
PRAGUE (TBE) – The opposition Centre Party leader Juha Sipilä is
set to become Finland’s next Prime Minister after winning the country’s parliamentary elections in April. Sipilä entered Parliament only
in 2011 after ending his successful business career in the IT industry.
In the election campaign the former entrepreneur promised to create
200,000 new jobs, stating that he has a lot of experience in turning
companies around and that the country can be managed just like a
company. “The main principle is the same – you must have a clear
vision, a clear target and a plan how to reach it,” Juha Sipilä said.
NORDIC CHAMBER eNEWSLETTER
YIT STAVO LAUNCHES MILESTONE PROJECT
MAY 2015
YIT Stavo, the Czech subsidiary of the Finnish construction company YIT Group, has
acquired a nine-hectare brownfield location
at the border between Prague’s Vysočany and
Hloubětín
districts.
The project will result
in almost 900 flats. YIT
Stavo plans to start the
development, which
is valued to more than
CZK 2 billion, already
this autumn.
“We are heading
among the top five
residential
developers in Prague, and
this requires that we
also launch bigger, so
called area development projects,” says Zuzana Martínková, YIT‘s Development Manager
for Central and Eastern Europe.
YIT has so far constructed around 450
apartments in Prague, so will you manage
to develop this huge project by yourself?
We acquired Euro Stavokonsult in 2008 and
started our first project under the YIT brand
in 2010. Since then we have gradually increased our construction and sales targets with
great results. The area development project in
Vysočany is a milestone for YIT that will further strengthen our position
among Prague’s developers.
The project will be developed
in several stages during the
next eight years. We are very
confident that we will achieve
the goals, thanks to the experience from similar area development projects in Finland
and the Baltics, where we
have been operating for many
years. Area development belongs to our long-term targets
in all the markets we operate.
All of YIT’s projects in
Prague have been marketed
as “Finnish-styled”. Will the Vysočany project also offer typically Nordic housing?
This project will definitely be in line with our
other projects. We consider “Finnish-styled
housing” to be a competitive advantage through the whole project
development – from design, via the
construction process to the customer services we offer. Moreover the
Vysočany project, as YIT’s Czech
pilot area development project,
will offer much more than what we
usually develop in other markets –
homes, shops, sport facilities and
parks – we are going to create a
complete living environment.
Do the factors important to Czech
clients when investing in a flat differ significantly from, say, Scandinavia?
Since we operate in seven quite different markets we have great knowledge of our clients’
preferences, and there are some basic factors
similar to all markets. The key buying factors not only for Czechs are location, layout
and price. However, each country has its
own specifics. In Finland a sauna in the flat
and an energy-efficient building are a must;
in the Baltics, the location of the flat within
the building is very important while in Russia
school and kindergarten must be present in the
SKANSKA ACQUIRES BROWNFIELD LOCATION
PRAGUE (VAB) – Skanska Reality has acquired a four-hectare brownfield
location in Prague’s Michle district from the Michelské Pekárny bakeries.
The existing production halls on the site will be demolished and replaced
by blocks of flats. “Our target is to create nice housing in an area that has
been dominated by industry,” Skanska Reality’s General Manager Naďa
Ptáčková said. No financial details have been released. Skanska earlier
this year announced that it has launched the residential project River Gardens Východ with totally 533 apartments in Prague’s Karlín district; the first
phase of the project is scheduled to be completed in 2016.
SWEDEN LOVES THE PLANET
PRAGUE (SWE) – Prior to the UN’s Climate Change Conference in
Paris in late November, the Embassy of Sweden in Prague has chosen “Sweden Loves the Planet” as a theme for 2015/16. A number of
environmental events are being planned, in cooperation with Business
Sweden and other partners, in the Czech Republic and in Sweden. “We
would like to inform about how Swedish society is adjusting to more
sustainable conditions,” Ambassador Annika Jagander says. “We hope
to intensify the dialogue with our Czech partners on experiences and
solutions which can contribute, inter alia, to better energy efficiency and
cleaner technologies.”
same area, preferably by walking distance. In
all markets clients welcome high-quality sales
service, openness and transparency.
Currently, Czech mortgage rates are record-low. You are not afraid that a reality
bubble may emerge in the future?
The current situation favours the entire residential sector. There is an expectation that the
mortgages’ interest rates will remain at a low
level at least for the next 1.5 year. At the moment we do not expect any threats of a reality
bubble, but as a residential developer operating
in different markets for many years we have to
count with risks as well. For example, interest
rates in Finland have been at a minimum level
for a few years already, but still the economy is
not growing due to other economic challenges.
Compared to the years before the financial crises we clearly see that people are more careful
when investing in property, even though interest rates are low in both countries.
At the recent AGM you were elected to the
Nordic Chamber’s Board. Do you have any
special ambitions as Board member?
I will definitely continue strengthening the
awareness and improving the image of the
Nordic Chamber, being an advocate of business development and helping Nordic/Finnish
companies to understand Czech business environment and vice versa. I also believe I can
help to attract more new
members and to develop
a transparent business
climate. My strong focus
will be on gender diversity in Czech business
life, because this field still
needs development even
though there are already
several initiatives going
on. Gender diversity is
well-established in Scandinavia and I believe we
can easily launch similar
supporting programs in
the Czech Republic.
CZECH VICTORY IN NORTH POLE MARATHON
PRAGUE (TBE) – Petr Vabroušek, a veteran of 152 ironman triathlons,
won this year’s edition of the North Pole Marathon in the impressive time of
4.22.24 hours. Forty-five competitors from twenty-two countries took part
in the ultra-tough contest; the course was a 3.5km marked loop around
the science and expedition base Camp Barneo, with competitors enduring
twelve laps to hit marathon standard. “I secretly hoped for a new course
record, but [difficult] race conditions and effective temperature below minus
40°C meant it otherwise,” the 41 year-old Czech commented. Mr Vabroušek won both the 2013 Antarctic Ice Marathon and the 2013 Antarctic 100k.
NORDIC CHAMBER eNEWSLETTER
SWEDEN’S SUPERSONIC LINK STRENGTHENING
MAY 2015
It was hardly a sheer coincidence. Less than
one week after General Libor Štefánik, Chief
of the Czech air force, visited Zagreb where
he praised his country’s acquisition of Gripen
jet fighters, Sweden’s Defence and Security
Exports Agency (FXM) issued this statement:
“Sweden makes an offer to Croatia on Gripen.” The offer of eight JAS-39 supersonic
aircraft includes a support and training package for pilots and technicians, and a financing
solution. Swedish industry is also offering industrial cooperation via Saab, in connection
with a purchase. “This offer has been prepared
in close collaboration with Croatia,” FXM’s
Deputy Director-General Peter Göthe said.
The overture in Croatia is not Gripen’s
only recent move in Central and Southeast
Europe. Saab has already made Bulgaria the
same offers as Croatia. And earlier this year
Slovakia’s Defence Minister Martin Glváč
confirmed that his government has launched
talks with Sweden with the aim of leasing a
number of Gripen aircraft to replace its current fleet of obsolete MiG 29 jet fighters.
Considering that Hungary and the Czech
Republic for more than a decade have been
operating squadrons of Gripen aircraft (Saab
has even located its global centre for the development and manufacture of virtual simulators in Slavkov outside Brno), the picture
gets clearer: in some years over 50 Swedishproduced jet fighters may cruise Central European skies.
fective operations, for the price of a used F-16.
They also offered leasing contracts and an industrial offset agreement, set at 150 percent
of the expected purchase value. On top of that
Gripen clients have been invited to participate
in various research programs.
While the Czechs and the Hungarians went
for the Swedish offer, the Poles in 2002 eventually chose F-16s, predominantly because of
the political emphasis placed on the strategic
relationship between Warsaw and Washington. Romania in 2013 bought 12 used F-16s
from Portugal.
Now, Slovakia, Croatia and maybe also
Bulgaria have an additional reason for selecting the Gripen. The Czech Republic and Slovakia recently signed a bilateral agreement
with Slovakia on joint airspace surveillance.
Hungary has discussed a similar agreement
with Croatia.
“In the future it’s not unrealistic that the four
countries will create one united Gripen squadron,” comments Jan Pejšek of the Czech Ministry of Defence. Also the Visegrad-countries,
No. of aircraft
Leasing expires
Possible contract
Hungary
14
2026
—
Czech Republic
14
2027
—
Slovakia
8
—
2016
Croatia
8
—
2017
Bulgaria
8
—
2018
At the outset the new NATO members in
post-communist Europe have three options
when upgrading their air force to the Alliance’s standards. They can modify their existing MiG-29 fleet, acquire second-hand jet
fighters from an Alliance partner or procure
brand new aircraft compatible with NATO
standards. In reality, however, cash-strapped
governments that won’t rely on Russian spare
parts don’t have an easy choice.
That’s where Saab came up with a brilliant
solution. The Swedes not only offered a brand
new JAS-39 Gripen, reputed for its cost-ef-
CLOSER DEFENCE TIES IN NORDIC COUNTRIES
OSLO (REU) – Calling Russia the biggest challenge to European security,
the Nordic countries in April agreed on closer defence ties and increased
solidarity with the Baltic states, aiming to increase regional security through
deterrence. Writing in a joint declaration, the defence ministers of Sweden, Norway, Finland, Denmark and Iceland said Northern Europe must
prepare for possible crises or incidents because of Russia. “There is increasing military and intelligence activity in the Baltics and in our northern
areas,” the ministers said. “The Russian military is challenging us along our
borders and there have been several border infringements in the Baltics.”
SCANDINAVIAN MINIMALISM IN PARKHOTEL
PRAGUE (TBE) – Prague’s Parkhotel, an icon of Czechoslovak architecture of the late 1960s, has finished a one-year reconstruction to bring the
building back to its former glory. Inspired by Arne Jacobsen’s emblematic SAS Hotel in Copenhagen, the elegant Parkhotel was Czechoslovakia’s first design hotel when it opened in 1967. “Coming from Sweden,
I can clearly see traits of Scandinavian minimalism in this unique building,” Parkhotel’s Managing Director Monika Hilm says. Professor Alena
Šrámková has assisted in the CZK 100 million-reconstruction of the inspired. Czech furniture producer Ton’s legendary “Stockholm” chairs in
one of the hotel’s restaurants underline the atmosphere of the 1960s.
which include Poland, are discussing joint
airspace protection.
This will have significant synergy effects.
Joint training and purchase of spare parts,
weaponry and logistics may save the Gripen
users in post-communist Europe lots of money. The costs can be cut even more if the four
countries decide to share their airspace. With
cross-border operations a routine, a Czech
Gripen may patrol Croatian airspace and Hungarian Gripens may refuel in Slovakia. The
benefit for all participants is more effective air
operability for less money than today.
BANG & OLUFSEN CUTS 125 JOBS
PRAGUE (TBE) – Danish home-electronics maker Bang & Olufsen will
cut 125 jobs to reduce cost and complexity, mainly in its audio and video
business. The company said the full scope of the restructuring, which will
cost DKK15-20 million, is expected to yield full-year cost savings of DKK
100 million. Half of the full-time jobs will be cut in Denmark. B&O has
since 2004 operated a factory in Kopřívnice, north Moravia, with around
400 employees. “The job reductions don’t only affect Denmark and the
Czech Republic, but also other countries where B&O operates,” says
Pavel Merhout, managing director of B&O in Kopřívnice.
NORDIC CHAMBER eNEWSLETTER
NOKIA TAKES UP COMPETITION WITH ERICSSON
MAY 2015
I
celand has been accepted as a founding will have stronger exposure to the important
member of the Asian Infrastructure In- North American market, with major AT&T
(Reuters)
vestment Bank (AIIB), said one of the coun- and Verizon contracts.
try’s senior officials. According to Gudmundur
Arnason, permanent secretary of the Ministry
orway’s Finance Ministry is reviewing
of Economics and Finance, Iceland now plans
its subsidies for electric vehicles after
to be involved in AIIB-financed energy pro- generous government incentives made the
jects across Asia. “Future energy initiatives country the biggest user of battery powered
can include both geothermal and hydropower cars in the world. Norway last week registered
its 50,000th electric car, almost three years
earlier than expected thanks to government
schemes that have cut taxes and provided a
plethora of benefits, including an exemption
from tolls and parking fees, free recharging
stations and the use of bus lanes. The current
incentive scheme came under criticism last
year when sales of the luxury Tesla Model S
soared and the budget lost NOK 3 to 4 billion
(Reuters)
schemes,” Mr Arnason said. “Icelandic busi- in expected revenue.
nesses may also offer consulting services for
general and single projects.” The AIIB has
hanks to larger ships, better planning and
been initiated by China to finance infrastruclower speeds Maersk Line has reduced
ture projects in Asia; totally 57 countries, in- its fuel consumption by almost 40 percent
cluding Sweden, have joined the organization since 2007. The Danish oil and shipping gias founding members.
(Icenews) ant aims to further reduce its fuel consumption by 60 percent, compared to 2007, by
inland’s Nokia is to buy Alcatel-Lucent 2020. “We don’t do this only because we
in an all-share deal that values its smaller
French rival at EUR 15.6 billion, building up
Nokia’s telecom equipment business to compete with market leader Ericsson. The deal
will redefine a sector suffering weak growth
prospects and pressure from low-cost Chinese players Huawei and ZTE. With about
114,000 employees and sales of around EUR
26 billion, the combined company will rank a
strong second in mobile equipment, with global market share of 35 percent. The new Nokia
N
want to be responsible, it also helps with the
bottom line,” Søren Toft, Maersk COO said.
Last year Maersk saved DKK 550 million
compared to 2013 thanks to improved fuel
consumption measures. About 90 percent of
all goods are transported by ships and the industry makes up about three percent of the
global CO2 emissions.
(Politiken)
E
uropean travel firm GoEuro looked into
issues such as how easy it is to get a
passport, which countries it offers access to
without a visa, its price and how long it is
valid for. Their study concluded that a passport from Sweden is the most powerful in the
world, followed by Finland, Germany, the
UK and the US. While those with a passport
T
F
THE KORUNA-CROWN-EURO INDEX
Euro
Danish kroner
Icelandic krónur
Norwegian kroner
Swedish kronor
from any of these top five nations can enter
174 countries without a visa, Sweden’s costs
only EUR 40. “It’s […] crucial to consider
the ability of the average citizen to afford
purchasing the document,” Molly Levinson
of GoEuro says.
(The Local)
CZECH REPUBLIC STILL SCORES WITH NORDIC TOURISTS
End IV/2015
27,400 CZK
3,673 "
0,186 "
3,217 "
2,921 "
End III/2014
27,455 CZK
3,680
"
0,183
"
3,239
"
2,926
"
Source: ČNB
Denmark
Finland
Iceland
Norway
Sweden
Hotel guests
2013
105,307
59,425
3,795
72,797
105,720
2014
93,618
65,368
4,323
69,522
105,086
y/y%
88.9
110.0
113.9
95.5
99.4
Source: CzechTourism
UPCOMING CHAMBER EVENTS
Date
1 May
1–10 May
13/15 May
21 May
27 May
29 May
4 June
18 June
Event
Skandinavian Hockey Hub VIDEO
World Ice Hockey Championship screening
Blue Heaven Big Band
Nordic Chamber Golf Masters
BB: Energy savings in the production processes
Launch of Labour Law Guide at European Law Firm Conference
BB: Trademark – how to protect your products
Strawberry Gala Reception
Venue
Hergetova Cihelna
Hergetova Cihelna
Reduta Jazz Club
Casa Serena Golf Course
The Mark Luxury Hotel
Hotel President
Hotel Jalta
Embassy of Sweden
For more details please see www.nordicchamber.cz/events. If you want more information about the Chamber’s activities please don’t hesitate to contact us at
[email protected] or telephone +420 774 123 370.
General Partner of the Nordic Chamber of Commerce